By Henning Gloystein
SINGAPORE (Reuters) – Oil prices dipped on Wednesday as rising output and U.S. sanction waivers that allow Iran’s biggest buyers to keep taking its crude reinforced the outlook for a well-supplied market.
Front-month Brent crude oil futures (LCOc1) were at $71.99 per barrel at 0552 GMT, down 14 cents, or 0.2 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude (CLc1) was at $61.84, down 37 cents, or 0.6 percent.
Brent and WTI have slumped by 17.4 and 19.7 percent respectively from recent peaks touched in early October.
U.S. bank J.P. Morgan said the “sell-off in oil was due to excessive crude” from rising production “whilst Iranian supply was still in the market.”
Washington re-imposed sanctions against Iran’s oil exports on Monday but granted waivers to its biggest customers, allowing them limited imports for the next 180 days.